Tax Tips That Can Save You Money

							                                                        For Further Information
                                        816.854.4287 or mediadesk@hrblock.com

TAX TIPS THAT CAN SAVE YOU MONEY

Here are six tips that can help taxpayers at all income levels keep more cash on
April 15.

1. Want a rebate? File a tax return.
The IRS will issue advance payments of a new tax credit starting in May for those
people who file a tax return by the April 15 filing deadline. The economic stimulus
payments are also being referred to as rebates. The key is to not procrastinate. If
you file your return after April 15, your rebate will be delayed.

Those receiving a rebate will get between $300 and $1,200, depending on their
filing status, income and tax liability, plus $300 for each qualifying child. You’ll
need to pay at least $1 of tax or have at least $3,000 of eligible income in 2007 to
qualify for the rebate. Eligible income includes wages, net self-employment
income, Social Security, Tier 1 railroad retirement benefits, and veterans’
disability and survivor benefits. The tax rebate begins phasing out at incomes
above $75,000 for individuals or $150,000 for married couples filing jointly.

2. Tax break eases foreclosure sting.
People whose homes were foreclosed on in 2007 may qualify for a break on
taxes that would otherwise have been paid on “forgiven debt.”

When a house is foreclosed on, the lender often sells the house for less than
what’s left on the mortgage, and the homeowner is relieved of the mortgage
balance. The forgiven debt is generally subject to tax. The new law excludes the
forgiven debt on a principal residence from being taxed if certain qualifications
are met.

3. Charitable donations? Prove it.
New for this tax season, the IRS now requires documentation for all monetary
charitable donations. A credit card receipt, canceled check or written invoice from
a charitable organization will do the trick.

And don’t forget when donating clothing or household items to charity, the items
must be in “good used condition.” As rule of thumb, only donate what a resale
shop could sell.

Visit www.hrblock.com to use a free online version of DeductionPro, software
that makes it easy to maximize and track charitable contributions.

4. Go green. Get green.
Hybrid vehicles and energy-smart home improvements save the Earth and keep
more money in taxpayers’ wallets. Taxpayers who bought new hybrid vehicles in
2007 are eligible for a tax credit of up to $3,400 depending on the make and
model of the car. And Americans who made home improvements in 2007 can
receive a one-time credit of up to $500 for purchases of energy-efficient
windows, doors, furnaces and air-conditioners. The home-improvement credit
expires this tax season, though, so don’t forget to claim it.

5. EITC: $4,700 may be yours.
Millions are eligible but don’t claim the important Earned Income Tax Credit. In
2007, as many as 20 percent of eligible taxpayers failed to claim EITC, according
to the IRS. Lack of awareness and complexity are primary reasons why many
working families don’t claim this valuable credit. Even taxpayers without children
may qualify to claim more than $400.

6. Your kids are worth cash.
A majority of taxpayers are misinformed about the Child Tax Credit, according to
H&R Block survey results. In 2007, nearly two-thirds of 1,000 respondents, 62
percent, said they didn’t know how much the credit was worth, and only 22
percent were able to identify it correctly as $1,000 per child.




                                                                                 2